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Tax

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Tax

We support collection of VAT & sales taxes in these regions.

Australia

For Australian foundries with Australian customers, invoices and checkout indicate that GST is included in the total price. Included GST is calculated for reporting purposes in the order CSV export.

Canada

GST/HST is automatically collected for Canadian foundries with Canadian customers.

VAT (EU & UK)

To collect VAT from EU or UK customers, you must enter rates to collect from each relevant country.

  1. Navigate to Settings → Tax.
  2. Under VAT countries, add the country in which you operate, and your VAT number for the country. Domestic reverse-charge rules vary country to country, check with your accountant if this is applicable to you. See below for details.
  3. Add VAT rates for each EU country.

The United Kingdom is included in the list of VAT countries, but is not part of the EU. Only add a rate for the UK if you are registered to collect VAT in the UK.

Reverse-charge

Customers who enter an EU country (or the UK) in the billing step of the checkout are prompted to enter their VAT number.

  • If the customer does not enter a VAT number, the full VAT is always collected.
  • If they do enter a VAT number, we check if they're in the same country where you have a VAT registration (in the VAT countries setting).
    • If they are not in the same country, cross-border reverse-charge rules apply, and the VAT is set to €0.
    • If they are in the same country where you have a VAT registration, we check the Domestic reverse-charge setting which you set in the settings.
      • If this checkbox is checked, reverse-charge applies and VAT is set to €0.
      • If not, the full VAT is collected.

For customers in other countries, the VAT line item is not added to the invoice.

VAT not applicable

If your company is exempt from collecting VAT, check the VAT not applicable checkbox under the VAT settings. Checking this box will ensure that customer invoices contain a line item containing “VAT not applicable” with a zero value. You may add an additional (optional) message explaining the reason for not collecting VAT.

UK VAT

If you are registered to collect VAT in the UK, add your own VAT number to the list of VAT countries, and then add a VAT rate for the UK. You may also add EU countries if you a registered to collect VAT in the EU.

Unites States

State sales tax can be collected for states you enable.

Navigate to Settings → Sales tax and enter the state codes for states in which you collect sales tax. Customers with billing addresses in those states will have sales tax calculated and added automatically.